I previously owned midPhase shared hosting, founded it in 2003 and it was successfully acquired in 2007. We started the business with little capital, and we knew from day one that we wanted our core business to be shared hosting, so that's all that we focused on. Aside from that, we didn't have the capital or the resources to provide dedicated hosting when we knew that there was a great market for it. I'm sure a large portion of existing SingleHop clients that read this will have heard of midPhase, because such a large portion of our client base was previously a midPhase customer! Looking back though, I wish that we had the resources or the ability to offer servers sooner than we did, but we decided to simply not bother with it. Don't make that same mistake, that if you can't afford servers you simply won't offer them. There can be a middle ground, and that's reselling dedicated servers.
We're working hard right now to have a reseller control panel out very soon, and shared hosting companies will clearly play a big role in it's success. As we develop the reseller system we'll have a unique perspective having owned and operated a large shared hosting company myself. We are already working with some shared hosting companies, names that we'll soon announce, so if you are interested, fill out our partners form here- http://www.singlehop.com/resellers/
I was always keen to getting in to dedicated hosting, because shared hosting was so successful, and some portion of those clients will inevitably grow and need something larger. Offering dedicated servers can diversify your product line very easily- even if you only provide as an upgrade path for clients that need a server. Either you give them the option, or they'll go to someone that will, so why not have it available? You're losing revenue if you don't.